NEW YORK (TheStreet) -- Melco Crown Entertainment (MPEL) shares are falling, down 2.45% to $19.48, in afternoon trading on Friday as pressure mounts on the gaming sector due to an analyst note saying that the floundering Macau gaming region in China is at a crossroads.
Susquehanna analyst Rachel Rothman said that the region is at a turning point as falling revenue in consecutive months puts pressure on the only legal gaming region in the country of over 1.5 billion people.
"We continue to believe that Macau will eventually turn, but we remain cautious in the near term given the small sample size, the potential for a full smoking ban, and no signs of a significant easing in the anti-corruption campaign," Rothman said. "We encourage investors interested in Macau to focus on LVS and MGM given greater downside protection."
Rothman decreased MGM Resorts (MGM) price target to $24 from $25 as a result of her analysis, while Las Vegas Sands (LVS) was lowered to $63 from $64, and Wynn Resorts (WYNN) dropped to $103 from $115.
Melco Crown is a developer and operator of casino gaming and entertainment resort facilities in China.
MGM shares are down 1.72% to $19.48, Las Vegas Sands are down 1.79% to $52.35, and Wynn Resorts are lower by 1.24% to $103.16.
TheStreet Ratings team rates MELCO CROWN ENTMT LTD as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: